Use the Information Below to Answer the Following Question(s)

question 44

Multiple Choice

Use the information below to answer the following question(s) .Bates Corporation used the following data to evaluate their current operating system.The company sells items for $10 each and used a budgeted selling price of $10 per unit.
-What is the static-budget variance of variable costs?

• A)$200,000 favourable
• B)$50,000 unfavourable
• C)$50,000 favourable
• D)$250,000 unfavourable
• E)$250,000 favourable

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Definitions:

Excess Supply

Occurs when the quantity of a good or service supplied is greater than the quantity demanded at a given price.

Supply Function

A mathematical expression representing how the quantity supplied of a good is influenced by its price and possibly other factors.

Demand Function

A mathematical expression that describes the relationship between the quantity of a good demanded and its price.

Coconuts

The large, hard-shelled seeds of the coconut palm, used as food and for making various products.